In the past, retail companies had to do everything themselves. They had to have their own warehouses, their own delivery trucks, and even their own employees to work on those trucks.
But now, with the rise of e-commerce, things are different: businesses can outsource all or some of this work to third parties called “third-party logistics” or 3PLs. A 3PL provider has a lot to offer in driving e-commerce success. As more and more e-commerce companies are partnering with 3PL providers, the 3PL industry is bound to thrive in the coming years.
According to a recent report by Global Market Insights, the Third-Party Logistics Market surpassed $1 trillion in 2022 and will touch $3 trillion by 2032. This signifies that companies are increasingly outsourcing logistics functions to 3PL providers to meet the growing demand for e-commerce products.
As the e-commerce ecosystem continues to become more dynamic, it has become essential for companies to find reliable and efficient partners who can handle their supply chain management efficiently. This article will elaborate on a few ways in which a 3PL provider can fuel e-commerce success:
Transportation
One of the key factors in the success of e-commerce is transportation. It’s a crucial component that can make or break your company’s ability to deliver products to customers on time and in good condition.
That’s where a 3PL provider comes in. A third-party logistics (3PL) provider can handle transportation for you so that your focus stays where it belongs: on growing your business.
The role of a 3PL provider becomes even more prominent when e-commerce sales are constantly growing. The expected third-quarter 2022 U.S. retail e-commerce sales in the U.S. touched $251.7 billion, according to the U.S. Department of Commerce.
No matter how much growth your business expects in the coming months or years, transportation management is going to be essential in keeping up with demand and ensuring that your customers receive their orders on time and in good condition every time.
A 3PL provider can help e-commerce companies handle transportation by offering solutions that are flexible, reliable, and cost-effective. Whether you’re shipping from a single location or want to expand your business with multiple warehouses across the country, a 3PL provider can help you get the products you need where they need to be in the most efficient way possible.
Warehousing, Fulfillment, and Distribution
If you’re an e-commerce business owner, you know that warehousing, fulfillment, and distribution are essential to your success. If you’re an e-commerce business owner who’s looking for ways to increase your profits, it makes sense to outsource these functions to a third party.
You can spend more time concentrating on expanding your business by letting a
3PL logistics provider handle all of your warehousing, fulfillment, and distribution requirements. These companies provide services such as pick-and-pack fulfillment that can help your business grow by boosting efficiency and cutting costs. And the best part? They do it all seamlessly, and you don’t even have to lift a finger.
As per Technavio, the market for warehousing and distribution logistics is anticipated to expand at a growth rate of 6.2% during 2022-2027. The market will grow in size by $72.96 billion during that period. A 3PL provider can help your business succeed by taking on the burden of these aspects. This allows you to focus on what you do best while they take care of everything else.
Reverse Logistics
Reverse logistics can be defined as the method of managing products that have been returned by customers for any reason. A 3PL provider can help e-commerce retailers and manufacturers manage this process by operating their own reverse logistics facilities or by outsourcing the work to a third party.
As an example, let’s say you’re an e-commerce retailer, and you have a customer who buys one of your products but doesn’t like it. They return the product for a refund or exchange, and now you have to figure out where to send it. In this case, reverse logistics involves moving that product from its current location back to your warehouse so that you can send it back out again if necessary. A 3PL provider can help you manage your reverse logistics by collecting and processing returned items.
In 2022, the reverse logistics market had a value of $613.0 billion, which will reach $858.8 billion by 2028. These values are estimated by the IMARC Group. This means that more companies are realizing the importance of maintaining a good reputation with their customers by providing an easy and efficient way for them to return items they don’t want or need anymore.
Environmentally Controlled Freight
Environmentally controlled freight is the way to go if you’re trying to get your e-commerce business off the ground. By choosing a 3PL provider that can handle environmentally controlled freight, you can ensure that all of your products will be properly transported, stored, and shipped.
Here are three ways that environmentally controlled freight can create bright business prospects for an e-commerce company:
- Product preservation: If you’re selling food or other products that need to be stored at specific temperatures or in specific environments, then you’ll want to make sure they’re being handled with care during transportation. This will help keep them safe and ready for sale when they arrive at their destination.
- Customer satisfaction: When customers see that you’re shipping their orders with care, they’ll feel confident in buying from your site again and again.
- Improved supply chain efficiency: When you use environmentally controlled freight services from a 3PL provider, you can improve your supply chain efficiency by making sure that all shipments are kept at ideal temperatures throughout their journey, so no product spoilage occurs along the way. This means better customer service and more sales for you.
In Conclusion
In conclusion, a 3PL provider can be a great asset to your e-commerce business. By having access to the right resources and assistance, you can succeed in your e-commerce endeavors.
A reliable 3PL provider can save you time and money by handling the logistics of your business, freeing up your employees to focus on what they do best: creating great products and interacting with customers.
